WOOD News

Fifth Third Financial Experts Share 2014 Economic Forecast

by Greg Ghering, WOOD Radio News Team

Two Fifth Third financial experts have shared their predictions for the economy in 2014.

Next year's economic forecast looks promising at a fundamental level, according to Fifth Third Asset Management's Chief Investment Officer, Mitch Stapley. He said there is some uncertainty, though, particularly surrounding Obamacare.

"we're just not sure how that one will play out. That one obviously is unfolding. I mean, do they delay it? Does the individual mandate get delayed one year? What do we do with employer mandate that's out there?"

He said tax reform proposals could be an issue, too.

His colleague, Fifth Third Bank's Chief Market Strategist, John Augustine, says he's optimistic, even though the Affordable Care Act does remain a bit of a wild card in the economy. He says there are two other areas of concern, as well.

"We're going to go through that fiscal battle again, remember, at the beginning of next year. That debt ceiling debate is going to play out again. Then we're going to have to see which way the Fed wants to go. Are they still going to want to be a tailwind to the economy?"

But he said he's optimistic overall, in part because retail sales grew last month despite the federal government's partial shutdown. He says it's also promising that Europe and Japan are out of recession and third-quarter economic growth in the US was better than expected.